Taxman disallows Rs 4.5L TDS, irks ITAT

• Aug 16, 2022
  

  The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has come down heavily on the I-T department for its failure to take cognisance of a tax deducted at source (TDS). The TDS was on professional income earned by a taxpayer and, consequently, the I-T department also raised a tax demand on her — along with penal interest.

  A majority of taxpayers invariably incur TDS against their income — be it against salary, professional income or interest income. To carry on with this illustration, it is the employer organisation, the client and the bank which are respectively responsible for deducting tax at source and depositing it with the government.

Tax Deduction at Source

Finance Ministry plans to review exemption-free tax regime to make it more attractive

Aug 16, 2022

The finance ministry is proposing to soon review the exemption-free new tax regime with a view to making it more attractive for individual income taxpayers, sources said. Eventually, sources said, the government aims to establish a system where there are no exemptions and the complex old tax regime with exemptions and deductions is terminated.The Union Budget 2020-21 introduced a new tax regime. Taxpayers were given the option to choose between the old regime with various deductions and exemptions and the new tax regime that offered lower tax rates without exemptions and deductions.

General

• Aug 17, 2022
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  India will ask Australia to amend its domestic law swiftly for the resolution of the tax issue being faced by Indian IT companies under the double-taxation avoidance agreement (DTAA), when trade ministers of both nations meet here next month, sources told FE.

International Tax

Tax department seeks to make faceless assessment smoother

• Aug 18, 2022

From setting up review panels to giving assesses time to respond to show cause notices and establishing a parallel verification system, the income tax department has worked out fresh checks and balances in its faceless assessment scheme to make it more robust.
Tax officers said that some of the changes were implemented at the start of the financial year itself, when 20 committees were set up to address concerns over high-pitched assessment that some of the taxpayers had raised. “Based on a review by the committees, we will establish whether the assessments are fair or not,” a senior officer said.

General

ITR Filing FY 2021-22: Received notice from Income Tax on claiming refund

• Aug 20, 2022
  
  

• The last date for filing income tax returns was July 31. Now the income tax filers are being scrutinised by the department, and refund is being issued by the department to those whose TDS has been deducted in the last financial year. Some taxpayers may have got the refund. But some have got the notice of Income Tax Department. Such a problem occurs when the calculation of income and tax has gone wrong.

Income Tax

CBDT exempts non-resident corporates from TCS on remittances, tour packages

• Aug 20, 2022
  
  

• The income tax department has exempted non-resident corporate entities and firms not having a permanent establishment or a fixed place of business in India from 5 per cent TCS on foreign remittances and tour packages.The Central Board of Direct Taxes (CBDT) has notified changes to I-T rules and expanded the scope of exemption (that was previously available only to non-resident individuals) under section 206(1G) of the I-T Act.

Tax Deduction at Source

India, others oppose OECD plan on future digital taxes

• Aug 20, 2022
  
  

• India and other developing countries have objected to a provision in a multilateral convention that bars nations from enacting any future digital services taxes such as equalization levy, saying the clause will unduly restrict sovereign rights to make laws, a development seen delaying a global tax deal to address digitaisation challenges.“We should be conscious that any commitment beyond a political commitment, will effectively constrain future law-making powers of sovereign jurisdictions,” according to the comments submitted by the G-24 (Group of 24 countries that includes India) on the Progress Report on Amount A of Pillar One of the proposed OECD/G20 tax deal.

General

Scrapping TCS on sale of overseas tour packages to foreign tour operators to boost Indian players: IATO

• Aug 22, 2022
  
  
  The government’s decision to withdraw the 5% “tax collection at source” (TCS) on sale of overseas tour packages to foreign tour operators could aid the recovery of the pandemic-stricken sector, says the Indian Association of Tour Operators (IATO) — an apex body of over 1,700 inbound tour operators. “The same was earlier withdrawn only for individual foreign tourists but now on IATO’s representation, the government has announced removal of tax, both on individual foreign tourists as well as foreign tour operators (FTO’s). The removal would make the tour packages offered by Indian tour operators to foreigners a bit cheaper and would help provide some succour to the pandemic ravaged sector,” IATO said in a statement.

Tax Deduction at Source